The state government issued Liquor Bonds and pooled in 8000 crore loans in what can be described as Jagan's biggest U-turn to date. The government has suggested issuing non-convertible debentures to raise a minimum of Rs 2,000 crore. Markets reacted enthusiastically, with the bonds being five times oversubscribed. The ap government, on the other hand, is merely spending 8000 crore.
That's because earnings from the sale of booze in andhra pradesh more than doubled to Rs 18,000 crore in the last fiscal year, up from Rs 9,000 crore the year before. Surprisingly, the previous chandrababu naidu administration similarly raised finances by selling bonds. The government had issued bonds through the amaravati Development Corporation at the time. The selling of amaravati bonds brought in Rs 2,000 crore at the time. Despite the fact that both occurrences are about raising finances, their political and public perceptions are vastly different.
The amaravati Development Corporation issued bonds for the sake of the city, and then-Chief minister N. chandrababu naidu attended the traditional bell-ringing event at the bombay Stock Exchange. To avoid criticism, the jagan government kept the liquor bonds a secret until the last minute. Naidu sold a vision in the form of amaravati bonds, while jagan took advantage of people's weaknesses to acquire finance, breaking a promise in the process.
The selling of these bonds indicated that the jagan government had made no commitment to prohibition. These bonds prevent jagan from pursuing Prohibition in the state, as he had previously promised. "If the government imposes a prohibition on the sale and consumption of liquor, all existing bonds will be prematurely redeemed within three months of the imposition," the agreement stated. For the government, repaying 8000 crores plus interest is unthinkable. As a result, prohibition is not an option.
That's because earnings from the sale of booze in andhra pradesh more than doubled to Rs 18,000 crore in the last fiscal year, up from Rs 9,000 crore the year before. Surprisingly, the previous chandrababu naidu administration similarly raised finances by selling bonds. The government had issued bonds through the amaravati Development Corporation at the time. The selling of amaravati bonds brought in Rs 2,000 crore at the time. Despite the fact that both occurrences are about raising finances, their political and public perceptions are vastly different.
The amaravati Development Corporation issued bonds for the sake of the city, and then-Chief minister N. chandrababu naidu attended the traditional bell-ringing event at the bombay Stock Exchange. To avoid criticism, the jagan government kept the liquor bonds a secret until the last minute. Naidu sold a vision in the form of amaravati bonds, while jagan took advantage of people's weaknesses to acquire finance, breaking a promise in the process.
The selling of these bonds indicated that the jagan government had made no commitment to prohibition. These bonds prevent jagan from pursuing Prohibition in the state, as he had previously promised. "If the government imposes a prohibition on the sale and consumption of liquor, all existing bonds will be prematurely redeemed within three months of the imposition," the agreement stated. For the government, repaying 8000 crores plus interest is unthinkable. As a result, prohibition is not an option.
